Skip to main content

tv   Power Lunch  CNBC  October 4, 2012 1:00pm-2:00pm EDT

1:00 pm
bargain. low 60s. >> reiterate on merck. i think the stock's going a lot high zblerp target, breaking out to a new high soon. >> paas. >> that's it for us. "power lunch" starts now. it is a power numbers edition of "power lunch." 33. that is the number of days left until the election. the number of days mitt romney has to solidify the gains that he made last night. so how will the president and the markets respond? we'll be looking at that. 767. that's the other number. google, all-time high in morning trade. see why a lawsuit may have given the stock its added pop and taking it up there to that airplane. that boeing number, 767. and 1 billion. the number of monthly active users now using facebook.
1:01 pm
what's not to like? sue, the markets are liking something today. tell me what it is. >> they are, tyler. up across the board. we've been up since the opening bell. we'll get to why in just a second. attorney general eric holder holding a news conference right now. it concerns major crackdown on medicare fraud. our senior correspondent scott cohn who covers that particular area in addition to many other things is joining us with the headlines. >> sue, it is something that we've been talking about a lot. this is amidst a three year crackdown on medicare and medicaid fraud by attorney general eric holder. more than $400 million in fraud alleged in today's operation. more than $400 million. 92 people charged. the biggest takedown by far
1:02 pm
today in miami where 34 people at various locations charged with some $200 million in fraud. this operation has touched all nine of the task forces so-called strike force cities. this raid this morning in brooklyn at a medical clinic in the brighton beach neighborhood. other arrests in los angeles, detroit, dallas, chicago, and more. of course we have been reporting for months on the huge problem of medicare and medicaid fraud. estimated at some $80 billion a year on the low end. this crackdown, which came up in last night's presidential debate. authorities tell us they found every kind of scheme imaginable in this operation. false billing for medical equipment, community mental health, home health care, the list goes on. among those reportedly arrested -- a hospital ceo in houston, as well as doctors, nurses and other providers. we will be monitoring this news conference and the indictments as they come out. more as we get it here and on cnbc.com. >> scott, thank you. we'll check back with you as conditions warrant. now to the markets.
1:03 pm
they're moving higher today, up 75 points on the dow, five on the nasdaq. s&p is up better than 8 1/2. we want to drill down on last night's debate. we want to begin with cnbc.com's senior editor john carney. have you an interesting take on what happened last night. it could be one of the reerns the market is moving the way it is moving today. >> absolutely. one of the things that barack obama election promised was much higher capital gains taxes. he said he wants to move the basic level up to 20%. his affordable care act already puts a 3.8% cap. so we'd be going from 15% to 23.8% for hire earners on capital gains. mitt romney says he wants to repeal obama care which takes out the 3.8% and he will keep the capital gains level at 15% for high earners and 0% all together.
1:04 pm
what that means is the pressure to sell before the end of the year. because this is all going to hit in january. there was a lot of pressure to say, look, realize your gains this year so you don't get taxed at the higher rate. >> exactly. so i think romney's performance last night made people say, hey, maybe i don't have to sell right now. maybe i can keep going. that gives a boost to the market. >> let's bring in kenny right now. also, another reason maybe not to sell is the fact that this market has been kind of teflon coated. it keeps grinding its way higher. if you don't have to sell because of potential tax changes, go with the flow. >> i understand that argument. and as great as the debate was last night -- i thought it was actually a tremendous debate for the country to see. i thought they were both very good but i think romney came out swinging very hard, he caught everybody by surprise. no one had seen that side of him. i still think it is a very close race. i'm not sure i, for one, am going to buy i don't have to
1:05 pm
sell because i think romney's going to win. >> they don't have to sell though right away. they have until the end of the year. we still have the potential after the election to get a sell-off if everybody says those capital gains are huge. >> i think you're exactly right. this morning we tested 1,426 1, think people are just playing it safe. >> you think it is real that people will sell if their capital gains rates are going up? >> i think they absolutely will. if they are going to go up, or people think they'll go up, they have to take advantage of it this year. >> tax advisors tell me all the time, look, this is what you need to do before the end of the year. basic economics. you have to sell before the end of the year if we're getting those higher levels. >> tomorrow we have the jobs report as well so we may not see too much further on the up side. >> i agree 100%. >> it was chicken pudding this morning. >> from the jefferson
1:06 pm
administration. >> thank you very much, guys. ty, back to you. it does no good for the chickens actually. i read the recipe. the president and governor romney are both out on the campaign trail already. the president hitting back hard suggesting in a rally that governor romney didn't tell the american people the truth last night. let's bring in eamon javers in washington. what did it mean last night? >> he absolutely retorically took a couple of steps to the center. he campaigned during the republican primaries as a very limited guy when it came to health care. he said his health care proposal in massachusetts was just appropriate for massachusetts and maybe suggested it ought to stay there. last night instead he said, this could be a model state by state for the rest of the country. that is a more moderate emphasis in tone than we have seen from romney before. i want to bring you another one
1:07 pm
that he said last night. a lot of folks on wall street sort of view mitt romney as the candidate who's going to come in here and save them from president barack obama. that's why a lot of wall street lobbyists here in town were surprised when they heard say this last night. >> dod-frank was passed and it includes within it a number of provisions that i think have some unintended consequences that are harmful to the economy. one is it designates a number of banks as too big to fail and they're effectively guaranteed by the federal government. this is the biggest kiss that's been given to new york banks i've ever seen. >> i talked to one banking lobbyist here in town today. his reaction, he said folks were puzzled by that. even romney is beating up on the banks. one thing that unites democrats and republicans is beating up on the big banks. so, sue, here in washington, lobbyists for the banking industry watching that slightly askance. but i think there is a sense that a lot of this is political and doesn't necessarily imply how romney would necessarily
1:08 pm
govern as president of the united states. >> indeed. i think you are absolutely right. thank you. so our poll question today -- do you think last night's debate will change the outcome of the campaign? vote by going to cnbc.com. the results are coming up a little later in "power lunch." next though, seema mody joins us with a market flash. >> hi, sue. we're calling it the romney effect. sectors moving on the back of what mitt romney said in last night's debate. we spoke about coal stocks. utilities -- wells fargo writing utilities should do well under the romney administration because of that. we're seeing some of these utility stocks moving higher. con edison up better than 1%. out in latest check on the pulse of the economy. nation's biggest retailers out with latest sales figures. looks like americans are taking a little bit of a pause after wrapping up back-to-school shopping. target says september same-stores rising 2.1%. a little bit shy of analyst estimates. target says it will stop
1:09 pm
reporting monthly same-store sales next fiscal year. that will follow in a practice established by rival walmart. macy's sales up but the department store also fell short of some forecasts. gap, however, did beat estimates. sales there up 6% in september. the stock at a new 52-week high today at $36.93. costco also seeing sales up 6%. that topped estimates. there's limited brands shares for good measure. sue? time for a tech check, ty. we're keeping an eye today on google, among other tech items. they're hitting another record high. the stock is up .5%. that's $4 at $766.74 per share. the search giant settling a seven-year leelg battle with u.s. publishers over google's digital book project. google has already scanned more than 20 million books. publisher sued saying that project violated their copyrights. under the deal, publishers have a choice over whether or not they want to make works
1:10 pm
available to google's project. another lawsuit, however, is still pending. we're also keeping an eye on hewlett-packard after yesterday's big nosedive. there you see it reflected in the charts. ceo meg whitman speaking exclusively with our david faber today saying don't bet against us. but the markets not listening today. shares slumping yet again. 9 1/2 year low for hewlett-packard at $14.80. so when can investors expect hp to get back on track? listen up. >> i'm confident that 2013 will be the bottom of the turnaround and then can you look forward i think to good growth in 2014 and 2015 as those products kick in. the investments that we're making in things like i.t. systems, in our sales organization, in training. those things will start to kick in and i really do think 2014 is going to be quite a bright year for hp. >> look at how hp has fared against its archrival dell so far this year. both are down.
1:11 pm
hp off about 44%. dell down 35%. tough years for both of those guys. geopolitical tensions sending oil prices back up. michelle caruso-cabrera with the three flash points investors need to know about. michelle? >> normally you say geopolitical tensions. you assume higher oil prices like today. however, we have three flash points coming up that could actually lower oil prices significantly. that's next on "power lunch."
1:12 pm
1:13 pm
1:14 pm
turkey's parliament improving a further turn irk reprisal attacks on syria after fi five turks, a mother and her children were hit by artillery yesterday. the syrian army already has its hands full with a civil war. a beirut based newspaper today says the rebels made advances in aleppo today killing dozens of elite troops. syria's just one of the mfo global flash points that traders are watching today. nbc's kerry sanders is in syria.
1:15 pm
but michelle caruso-cabrera has a flash point on what could drive stocks lower. >> the election. romney's strong performance last night leading some to think we could see more oil production right here in the united states because if he wins, he has promised more domestic drilling. flash point number two is iran. we showed you this video first yesterday of protests going on there, driven by inflation. that's led some commodities triggers like dennis gartman to say inflation could lead to yet another change in regime there. if there is a change in regime, that could end sanctions which could lead to more oil production. the election in venezuela coming up this weekend. it is possible -- not probable, but possible that hugo chavez loses. if he does, then we could see more investment in the infrastructure and oil investment facilities down there in venezuela and once again more oil production. three places where we could see more oil production in the coming months. to that point, about chavez
1:16 pm
and vuenezuela, let's go to nbcs kerry sanders live in caracas and he's looking at what's at stake for venezuela's economy, the oil industry and its culture if chavez loses sunday's election. kerry? >> reporter: tyler, by law, today is the last date that candidates can campaign here today in venezuela. a huge rally. a pro-president hugo chavez rally is scheduled for right here in the capital, caracas, later today. supporters of president chavez say they believe the future of of this oil rich country is best left to president chavez's control. at 58 years old he's been a power here for 14 years. the opposition at 40 years old, young, energetic, some say a sexy candidate who believes the oil wealth here has been squandered. his promise to re-invest in the neglected oil infrastructure in this country to get more oil to market.
1:17 pm
of course, if that oil draws so much of the u.s. interest, opec estimates venezuela has the largest reserves of oil in the world. the country is currently the fourth largest supplier of oil to the united states. but experts say the industry which was nationalized under chavez has been neglected. maintenance issues and lack of investment explain why the oil output here has actually dropped 30% in the last decade. punctuating the problem db president chavez which of course is no friend to the united stat states. >> clearly the nationalized model has not work. crude oil production has declined substantially. the refining industry is a mess to the point that venezuela is importing gasoline and diesel fuel from the united states. >> reporter: venezuelans go to the polls on sunday in this country that's about twice the
1:18 pm
size of california. 29 million people here. it is expected that we will actually find out results early monday morning because the votes are going to be tabulated electronically. >> kerry sanders, nbc news, thank you. now let's check in on how oil is reacting to the flash points we just discussed. sharon epperson is tracking the action at nymex. >> of course traders here will be watching the venezuelan elections very carefully but the infrastructure's problems there are long term and may not have an immediate impact on oil futures. in the immediate term though they are watching what is happening in syria and turkey. they're always watching very closely developments in iran and those factors certainly having an impact on oil prices. what's driving the price more so though they say is the huge sell-off we had yesterday and a little bit of a rally back here in the session today as well as the currency fluctuations we've seen. the weakness in the dollar definitely helping oil prices as well but remain in this $88 to $92 ban which we've been in for
1:19 pm
some time. we're also looking at supply issues in the u.s. with more supply here making the fact that we are seeing lower prices year to date, or at least a decline, versus what we see with the brent crude contract. tyler, back to you. >> i'll take it, thank you, sharon and ty. so we've laid out a lot of scenarios. with all of this in mind, how do you actually play the energy sector right now? president of oil outlooks and opinions is bullish on crude and carl joins me now on the floor of the nyse. michelle made some pretty compelling arguments about why oil should go lower. you're still bullish though. why? >> we're nowhere near the numbers we saw in '06 and '08. if we can get qe3 going, that demand is going to meet what supply we have and probably outpace at some point. >> a lot of people down here feel as though qe3 may do a little bit to help the economy, but that with every quantitative easing we've seen less impact in the economy. it doesn't sound like you quite
1:20 pm
buy that. >> i mean historically last time we had double digit unemployment it took five years before we really came into it. we're going into the fifth year. qe3 will play right into what happens next. >> how high do you think crude might move if indeed we see a recovery with more traction? >> first off, say next year, $104 to $106 to wti average. how do you get involved? i say something that's going to be international. exon or oil refineries are definitely things you should get into. nice to see you again, carl. he may be most powerful man on wall street, perhaps the most powerful man in american business. "vanity fair" just did a great profile on jamie dimon. see what the writer bethany maclean learned about jpmorgan's ceo.
1:21 pm
next though we analyze the analyst's calls on following stocks -- sprint, ebay and u.p.s. before the break, some thursday movers. "power lunch" is back in two. [ male announcer ] for the saver, and a big first step.
1:22 pm
for the spender who needs a little help saving. for adding "& sons." for the dreamer, planning an early escape. for the mother of the bride. for whoever you are, for whatever you're trying to achieve, pnc has technology, guidance, and over 150 years of experience to help you get there. ♪ to help you get there.
1:23 pm
chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save. welcome back to "power lunch." i'm seema mody here at the market flash desk. take a look at inform did the t
1:24 pm
informatica citing worsening business conditions in europe, the stock is down almost 25%. time teeo analyze this. let's get right to it. rw baird downgrading sprint/nextel to underperform from neutral noting the firm's concern with sprint's long term competitive positioning. saying particularly its ability to turn around postpay subscriber results. stock down 10% in a week. >> this may be another bidder for the metro pcs. that sprint might come in. not a great idea. that's just another reason to stay away. but we agree about this postpay subscriber thing. we think they're going to attract the really big downloaders, people who want unlimited data and they are not profitable. stay away from sprint. >> you agree with the call here downgrading. nomura upgrading to buy from
1:25 pm
neutral. "there is no debate ebay has been a standout year to date." year to date the stock is up more than 63%. i wish they'd told me this year to date. >> yes, don't we all? again, i disagree with this call. it is predicated on paypal. i think paypal is a great property but there's -- it's only part of the mix. plus we don't really know where this growth is coming from. >> you disagree with this call to upgrade on them. rbc capital downgrading u.p.s. to sector perform from outperform noting that in its view, u.p.s. is "approaching a period of slower growth." six months, the stock down more than 8%. downgrading it. >> right. i think that is a correct call although a little earlier would have been nice. but this is a company that's a coincident indicator with the economy and things don't look great so i would stay away, too. >> terrific, thank you, kim. gold prices closing. we're going to head to nymex for
1:26 pm
the final metals trade. plus, jamie dimon navigated jpmorgan brilliantly through the financial crisis. but a $6 billion trading blunder have left him red-faced. "vanity fair's" bethany maclean spent the last four months with dimon. she joins us first on cnbc to tell us about what she found out. ♪ [ male announcer ] introducing a reason...to look twice. introducing a stunning work of technology -- the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection. i was downstairs making coffee, and we heard it. it just came crashing through the roof, out of nowhere. what is it? it's our ira. any idea what coulda caused this? maybe. i just sorta threw a little money here, a little money there.
1:27 pm
and i loaded up on something my dentist told me was hot. yeah. ♪ yeah. one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now.
1:28 pm
1:29 pm
there's ban lot of action in the oil market and the metals markets today. the gold market is closing right now. sharon epperson rejoins us. she's tracking the action in all of those markets. she's down at the nymex. >> it is perfect timing because we are closing in on $1,800 an ounce here for gold at the highs of the session here in floor trading as we are about to come to a close. looking at a $17 gain. a lot of it has do with the comments coming from the ecb president mario draghi today coming from the bank of england, remaining with low interest rates for an extended period of time. also, the fact that we are looking at this rally coming back ahead of the non-farm pay rol rolls number we're going to get out tomorrow. that's something traders are watching very carefully. >> down here on the floor, something people are starting to
1:30 pm
talk much more about than they have in the past, the $2,000 level for gold. you mentioned we're closing in on $1,800. is that the next significant level for the market or is it below that level? >> $1,800 is a very significant level psychologically and also the fact that we hit that in november of last year, and then we did see gold prices kind of get a little bit weaker after that fact and backed off a bit. there's a lot of concern about whether or not gold will be able to close above the $1,800 level and remain there and sustain that level. a lot of it has to do with how much of this monetary easing is priced in not just by the feds but by other central banks around the globe. >> sharon, thank you so much. the trading action here. we're on the plus side. bob pisani joins me on the nyse floor. we're seeing a lot of the debate from last night play out in very tangible ways here on the floor. >> particularly in health care and materials groups. nice movement today. volume is moderate to heavy. we could do 4 billion shares here at the new york stock exchange. let's take a look at what was
1:31 pm
moving. we have have been talking about this for the last few days. again today, this is the third day in a row, transports are outperform being the industrials. for three months the transports underperformed industrials and now analysts were saying ah-ha. this is a good sign for bulls in the market. major sectors moving, in commodities, we're seeing the spillover in the stocks market. coal stocks up. governor romney said he likes coal. near a new high in the bank index. other sectors like metals, mining and gold. all stronger. maybe a little spillover from the spike we've seen in coal today. >> thank you. appreciate it. now to the nasdaq, bertha coombs is there following the movers. >> big mover is google. market cap today above $250 billion. facebook had moved earlier this
1:32 pm
morning, now it is 2 billion users. now it is higher. it's bounced off that 60-day moving average. apple did that the other day. look at am lately compared to google. it used to be as apple goes, so goes the nasdaq. now you want to watch google in terms of the momentum play. google has started to see a lot more momentum over the last month or so. in terms of the weight in tax cuts, warnings coming from hp and informatica. dell among those tech stocks hitting a 52-week low but dell has bounced at this hour. biotech continues very strong movement continuing to move higher. amgen, all-time highs today after a little bit of profit taking. >> thank you very much, bertha. rick santelli is tracking action at the cme. >> hi, sue. you talk about compression, you talk about squeezing the spring.
1:33 pm
look at the 24-hour charted 10 47b year no year note. this looks to be the eighth -- eighth -- session we're going to settle in a tight range between a $1.61 and a 1.66% yield. look at the bund. similarly affected by the draghi press conference and this could be the seventh day -- get this, the seventh day bund yields close between 1.44%. actually it is closed. between 1.44% and 1.46%. we're talking two basis points. you can see what the euro thought. it is getting ready for that bazooka to get fired. if you look at dollar, it is down against every major currency. remember yesterday we talked about selling the dollar index? look at this chart. home run. traders looking pretty happy today. tyler, back to you. >> rick santelli, thank you very much. today's power player, collin
1:34 pm
moore from columbia xhangment, the nation's eighth largers manager of mutual funds, $131 billi -- $331 billion under management. we had a lot of talk after last night's debate. whether you should invest in coal stocks or hmos or utilities because of romney's performance. are a few words in a debate ever a good reason to invest? >> in short, no. there were encouraging elements of what was said but this is the first debate. i think expectations around romney's performance were pretty low. i think the gallup poll put 3% who expected him to do well. in the end he had a reasonably low expectation to overcome. that won't be true in the next set of debates. >> if you're putting mrn -- your view, putting money to work today based on extrapolations from what you heard or your sense of who won the debate, you think that's a fool's game? >> i do. >> let's talk about where you see -- stick with politics.
1:35 pm
beginning of the year you said you expected president obama to be re-elected. do you still believe that? >> yes. yes. i really do. i think that he was maybe two scores up as i heard on "squawk box" this morning. maybe now it is only one. i still think in terms of looking at these battleground states and where he appears to have a competitive advantage, he's still ahead. >> you were extremely accurate in your overall call, at least as of this date, of how the market was going to perform. you said about 15% in 2012. that's about where we are. is now a good time to invest? and then what's going to happen in 2013. >> i would be much more cautious now. we divided our analysis of the market into two parts. there's the things people normally talk about, growth rates and earnings and the economy, but also the discount rate. the interest rate plus this other fear or uncertainty factor. the fed's actions did reduce the uncertainty factor. they reduced the liquidity that
1:36 pm
took some of that fear away. but it's not really transferring into growth. if you do the high school long division dividing risk into growth, i actually would be very cautious -- >> i hear a little ireland or scotland in your voice. irish. so 2013, you said this year is going to be a 15% year. what do you see for 2013? >> i'm in the 4% or 6% return. i think we'll still get some modest earnings but that re-evaluation that i was looking for because of federal policy has already occurred. don't see much more than that. if the cliff cuts in, it could actually be worse. >> let's talk about another kind of cliff, the one in china. how worried are you, how worried should investors be about a slowdown in the chinese economy in. >> significantly. our concern at the start of the year is growth might slow as much as 5% or 6%. at that time we were talking 10% or 11% risk. now down to around 7% in the
1:37 pm
expectations. worked out in asia in the mid-90s. growth economy is slowing. if you're used to 5%, 10%, the impact that that has on energy, on materials, on all sorts of things is pretty significant. both for china and its implications for the rest of the world is pretty significant. >> you say 4% to 5% might be a reasonable return expectation in a domestic stock portfolio for next year. if i'm not satisfied with that, i'm greedy, i want more than that, where can i enhance my return under the scenario you predict? >> i would get similar returns still from the high-yield area. high yield acts like equities. you're not really changing your risk profile there but i'm also really interested in the emerging market areas. >> but not china. >> not china itself. that's true. it depends on some of the monetary policy, changes they may now make. but at this point, no, i agree.
1:38 pm
>> we have to leave it there. you called the market right. you said 15%. that's where we are. thanks for being with us. let's go to seema for a market flash. >> we got a lot of ipos this week. a company that specializes in plastic packaging debuting on the new york stock exchange today with a $470 million offering. it hasn't had the best trading day, stock opening lower at its debut, currently down better than 5%. the bulls are in a good mood down here today. the dow jones industrial average up almost 100 points right now. we're up 95 points on the dow at 13,590. the nasdaq is up about 1s. we'll cover all of that. they don't call them the king of wall street for nothing these days. "vanity fair's" bethany maclean spent four months with
1:39 pm
jpmorgan's jamie dimon. the jamie dimon you may not know coming up next. as we head out though, take a look at the widely lelds that we are attracting today. back in two minutes time with microsoft up .1%. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. which can withstand over three and a half tons. if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students.
1:40 pm
let's solve this. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice.
1:41 pm
go national. go like a pro. [ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪ beer's going to have the fed minutes right at the top of the hour. then we're going to look at how big ben, the puppet master, pulls the strings behind the scenes of the central bank to get what he wants. we're also going to take a
1:42 pm
look at the real jobs killers in america. we debate whether safety nets are really anchors on our economy. what our kids should really be taught for all that money. lots of things coming up on street signs. back to "power lunch." jamie dimon was one of wall street's heroes during the economic meltdown but his teflon image took a $6 million dent because of the london bail. "vanity fair's" bethany maclean and bill cohen spent four months with mr. dimon to get a sense of what the banker's really like. it is all inside an action-packed november issue of "vanity fair." daniel craig as james bond is on the cover. bethany, welcome to "power lunch." nice to have you here. >> thanks for having me on. >> we've seen jamie dimon in a lot of public settings.
1:43 pm
we've had him here on cnbc joining us. we've also seen him on capitol hill and on the bus tours. you spent a long time with limb. is the jamie dimon that we have seen the jamie dimon that you saw? >> i think there are a couple of different sides to him. there is this almost irascible outspoken guy who's been this earned defender of the big banks and who can come across as almost unseemly in how aggressive he is in his comments and the way he's taken on people who think we need more regulation or perhaps a break-up of the banks. but then there's this other side to him which is a very mu main side. the guy who's out on a bus tour in a sweltering august instead of at his hamptons house and the guy who is kind to people in private moments which i think is very telling. >> bethany, tyler here. i used to work in print. now that i'm a tv guy, i don't do nuance very well. i just want to ask you, you spent a lot of time with him. is he a good guy? not such a good guy? do you like him? do you not like him? what am i supposed to think of
1:44 pm
jamie dimon when i finish reading your profile? >> i think it is hard not to like him. you may disagree with him but he speaks for what he believes in and what he thinks is right and i think, look, we live in a society where free speech is supposed to be valued. i think he has a right to say what he thinks. and i think he's a guy who is decent human being, who treats junior people with a level of respect that is unusual in people of his standing. >> that i think has created what some call the cult of jamie. what was his response. i know you talked to him about that. what was his response? >> he denies that it exists. i think here you could offer some criticism of him, that perhaps he is unaware of the cult that he inspires. but he says that he encourages open conversation and that he doesn't want there to be a cult of jamie. he wants people to challenge him
1:45 pm
and he wants people to bring him things when they disagree with him. that leads interestingly to this london whale event and people saying they did try to raise questions about what was going on in the cio. and dimon says no one brought concerns to his attention in a way that he could hear. >> interesting. >> bethany, i was struck last night by one of the things bl romney said in the debate, and that was that parts of the dodd-frank bill were effectively a big wet kiss to some of the biggest banks on wall street, to the new york banks. do you think mr. dimon feels that way about dodd-frank? >> i do not think mr. dimon feels that way about dodd-frank. you can get into a big debate. i think what mr. romney was referring to was the resolution authority that allows the government to break up big banks and whether you think that's actually just a secret bailout mechanism or whether it will really lead to a break-up of the big banks in the advent of another crisis. my view is we won't know until we test it what it is actually meant to be. but dimon has very clearly been
1:46 pm
on the side of the big banks, both that they are not too big to fail and that big banks are business an serve our economy in the appropriate way. i think he's staked out that terrain in a no-holds kind of way. >> i think one of the things that people find very interesting about him is that he's kind of refreshing. he speaks his mind certainly. sometimes perhaps a little too bluntly for others. but he differs so dramatically from some of his other ceo counterparts on the street. he's been in banking for his whole life and his family has been for much of their life as well. but bethany, you mentioned the fact that he felt very hurt when he was fired from a position. yet he's pretty -- i don't want to say ruthless. that's too hard a word but he certainly executes very efficiently on his own levels. did that particular experience change him? >> you get the sense when you talk to jamie dimon that he's a guy who would prefer a more old-fashioned tribal version of
1:47 pm
loyalty and that for many years he embraced that. if there was a criticism of him, it is that he brought his same group of people everywhere and that you couldn't penetrate that group if you were an outsider. but you look into that and it is actually not true. he's pretty ruthlessly, as you mentioned, excised a lot of those people as they've either failed to deliver or wanted to go. now he defines loyalty in this very nuanced way that is about performance for the institution and performance for the person. and loyalty to principals, and that he doesn't want little toy to him and he doesn't think he should have loyalty to have somebody else because, hey, we're buds you. it is kind after high-minded definition of loyalty and one you sense he had to work his way toward. >> what is next for dimen? what do you think he'll do? >> he's got more about what he won't do than what he will do which i think is telling in many ways. i think it is clear he's going to stay at jpmorgan chase for at
1:48 pm
least the next few years. there was a lot of talk he would leave to become treasury secretary. i think that's completely off the table. he says he doesn't want another position managing a big institution. he could end up owning a bar on the upper east side after all. >> you never know. bethany, thank you. it is a good read. appreciate it. the new "vanity fair" on newsstands later this week. lot of people think maybe jamie dimon is the james bond of wall street. >> macho, sue. daniel craig, or jamie. facebook hitting a billion active users today. count them all. is this ceo mark zuckerberg's redemption after that rough ipo in may? shares of the social network off its highs for the day, but it is also fallen 40% since it went public. here's a look at how some of the other social media stocks are trading right now. accolade overdrive.
1:49 pm
zagat just gave hertz its top rating in 15 categories, including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade. we know you.ther reason more investors are saying... we know you have to rise early...
1:50 pm
and work late, with not enough sleep in between. how you sometimes need to get over to that exit, like, right now. and how things aren't... just about you anymore. introducing the all-new, smart-sensing... honda accord. it starts with you.
1:51 pm
time for our power rundown. jewel with julia boorstin, nice to have you here. and our wealth editor, robert frank. >> who needs wings? >> you said you can get private
1:52 pm
jets cleeper now. facebook, 1 billion active users today despite the social network's growth. ceo mark zuckerberg admits the road has not been easy after the ipo debacle in may. shares of facebook down more than 40% since it went public. a billion users. this is good news for you. >> sure. it's good news. we saw this coming. i actually think the more interesting number is not the billion number, it is the 600 million mobile users that facebook announced it has. that means that facebook's mobile users continue to grow faster than its overall user base which has a double edged sword there. it is good news but they're also not making as much money from those users as their desktop users so they got to get to work. >> i'm one of the 6 billion people who don't have a facebook count. has facebook hit its peak? >> the two numbers i found interesting. first is number one. that's how many drawers mark zuckerberg has in his closet. he has $57 million house. you think you could afford more
1:53 pm
than one drawer. the other one is they're charging $7 as a trial for people who boost their news feeds, pictures much their pets and kids. >> sticking with social media, during the presidential debate last night a member of kitchenaid's twitter team mistakenly posted an offensive tweet about president obama on the company's twitter page. instead of from his or her personal twitter handle. kitchenaid apologizing for the error today but will corporate america ever figure social media out? is this a governance problem? what is going on? >> like you, i was more surprised that they had a twitter team. i wently went on and see what did you twitter about? this company makes mixers! 4,000 tweets from a mixer company. here's one. they tweet, it's national pancake day. let's eat breakfast for dinner. here's another one, i'm sorry you're still having problems doing your peanut butter. we have too much information
1:54 pm
here. >> they came back and they took down the tweet. they said this person's no longer going to tweet for us. >> it is human error. every company out there has to have a twitter account. they don't have a choice. they just have to make sure whoever is running the account does not screw up. >> i don't remember a club who would have me a member. anybody tweets to a kitchenaid -- >> unless have you peanut butter problems. who was hit harder at last night's presidential debate? big money or big bird? >> come on. big bird got his 15 minutes here. when was the last time that so many people all around the world had talked about big bird? i think that big bird -- >> was romney effectively saying that big bird is one of these entitled 47% -- >> here's my question. is big bird a job creator? how many jobs does big birds create? >> a lot. >> the wealthy got hit so hard last night. first it was poor donald trump being called small or not small.
1:55 pm
>> he would not agree with that. >> then we had the private jet owners. poor guys. then we had romney saying the 1% will be fine. even if obama gets into office. where do we have the wealth support group online? >> big bird is a job creator. >> big bird had a twitter handle, #firedbigbird. last night big bird was tweeting. i was a follower. but twitter took down his account. i can no longer fine the account. big bird, job creator. next hour -- street signs. one group that got no love at last flight's debate and how it could end up costing you dearly.
1:56 pm
mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer.
1:57 pm
i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 their equity ratings show me how schwab tdd#: 1-800-345-2550 rates specific foreign stocks tdd#: 1-800-345-2550 based on things like fundamentals, momentum and risk. tdd#: 1-800-345-2550 and i also have access to independent tdd#: 1-800-345-2550 firms like ned davis research tdd#: 1-800-345-2550 and economist intelligence unit. tdd#: 1-800-345-2550 plus, i can talk to their global specialists 24/7.
1:58 pm
tdd#: 1-800-345-2550 and trade in my global account commission-free tdd#: 1-800-345-2550 through march 2013. tdd#: 1-800-345-2550 best part... no jet lag. tdd#: 1-800-345-2550 call 1-800-790-3801 tdd#: 1-800-345-2550 and a global specialist tdd#: 1-800-345-2550 will help you get started today. right now we're up 86 on the dow jones industrial average. nasdaq up 33%. the s&p at 1,461. we'll see whether or not it holds into the close. we have a lot of key data tomorrow morning. question for you -- does it
1:59 pm
make sense to invest today based on your impression of last night's debate or anything that was said there? >> i would strongly say no. at ft. pitt capital we buy stocks, we don't trade them. you have to do your homework. look at that balance sheet. figure out if management is going to work for you, the shareholder. we're not action oriented on who did a good job at the debate. >> kim forest, thank you very much. that will do it, sue. we'll go to the street signs team a little early because they're going to bring you the fed minutes. that's right. breaking news on those fed minutes coming up right now because street signs begins right now. ty and i will be back tomorrow. have a great afternoon. all right, america. forget democrat versus republican. we are about to take you inside the fed to find out o more about just who these women and men are that could be the mos

53 Views

info Stream Only

Uploaded by TV Archive on